Scottish and English debt laws are different, so if you are a Scottish resident and have questions on debt, then this is the place to post.

Moderators: TalbotWoods, JaneClack

By doug_heffernan
#41236 Hi there,

this is my first post ... Hi :D ... and was just wondering if anyone could give me a few pointers that may help me out.

Firstly I am in a pile of debt (man I feel so annoyed with myself!) but it is only to three different creditors:

- Bank overdraft
- 2 x credit cards

I owe approx £25,000. I basically lost my job and have been depressed for a good while, ended up running up huge amounts of debt on my CCs and increased my overdaft (which is now huge to :cry: )

I spoke to PayPlan who have sent me info regarding an "Informal Agreement". I am in the process of getting a new job just now (should be a few weeks) and they said to phone them back once I start earning.

The problem I have is what do I do with my CC bills that need paid in the very near future? ... should I meantion I have started this process or will that let them take me to court first?

Also when it comes to I&E what is the best thing to put for "socialising" in the expenditure column? ... I mean I know I wont be going out much, but I do need some money to live on otherwise I may as well just top myself!

I read in the paperwork from PayPlan that your creditors wont like it if you write an amount for socialising ... but surely there must be some amount?

Finally I will be getting a quick temp job to get started again, probably earning about £700 per month take home pay. I reckon I could put about £150 towards my debts each month ... do you thing creditors are inclinded to accept this amount? ... or would it be a big fat NO?

Sorry for all the questions. I spoke to PayPlan only briefly and have only just thought about all these different things.

Thanks in advance for any help :wink:
By JLP
#41297
doug_heffernan wrote:Hi there,

this is my first post ... Hi :D ... and was just wondering if anyone could give me a few pointers that may help me out.

Firstly I am in a pile of debt (man I feel so annoyed with myself!) but it is only to three different creditors:

- Bank overdraft
- 2 x credit cards

I owe approx £25,000. I basically lost my job and have been depressed for a good while, ended up running up huge amounts of debt on my CCs and increased my overdaft (which is now huge to :cry: )

I spoke to PayPlan who have sent me info regarding an "Informal Agreement". I am in the process of getting a new job just now (should be a few weeks) and they said to phone them back once I start earning.

The problem I have is what do I do with my CC bills that need paid in the very near future? ... should I meantion I have started this process or will that let them take me to court first?

Also when it comes to I&E what is the best thing to put for "socialising" in the expenditure column? ... I mean I know I wont be going out much, but I do need some money to live on otherwise I may as well just top myself!

I read in the paperwork from PayPlan that your creditors wont like it if you write an amount for socialising ... but surely there must be some amount?

Finally I will be getting a quick temp job to get started again, probably earning about £700 per month take home pay. I reckon I could put about £150 towards my debts each month ... do you thing creditors are inclinded to accept this amount? ... or would it be a big fat NO?

Sorry for all the questions. I spoke to PayPlan only briefly and have only just thought about all these different things.

Thanks in advance for any help :wink:


Hi Doug

Well we tend to put socialising in the Housekeeping or in Emergencies (that you should have anyway- for washing machine breaking down etc). At the moment you dont have any money to put towards your debts so why not a token payment until you start earning. You dont state if you have any assets like home/car etc. And change your Bank Account to a basic account and have your Overdraft treated as a debt in a repayment plan.

However you say that you should be able to pay £150 per month towards a £25k debt.By my calculation, this will take you nearly 14 years to clear (and thats assuming that you can get the interest/charges frozen for that period). That may be accepted initially by creditors BUT this may not be the best option for you. I wouldnt recommend the new Debt Payment Programme (under Scottish law) for that length of time(which protects you from enforcement action by creditors), so would not suggest an Informal Repayment Plan either.

Have you considered a Trust Deed? You must have a surplus Income every month (£150 sounds fine unless you have greedy IP's). This is a form of Voluntary Bankruptcy wher you pay something towards your debts, but they are cleared in 3 years instead of the 14 that you will be on a DMP.
By doug_heffernan
#41512 Thanks for the info JLP,

I actually live at home and dont have any assets (i.e. no mortgage, car etc.) ... I literally have a TV and PC!

I phoned PayPlan and they suggested the IP, but as you say this would take a heck of a long time to pay, I would be about 40 by the time it was paid off :?

I will look into the Trust Deed idea, sounds a more realistic approach if I can clear it over a 3 year period.

Thanks again for the pointers. :wink:
By JLP
#41523
doug_heffernan wrote:Thanks for the info JLP,

I actually live at home and dont have any assets (i.e. no mortgage, car etc.) ... I literally have a TV and PC!

I phoned PayPlan and they suggested the IP, but as you say this would take a heck of a long time to pay, I would be about 40 by the time it was paid off :?

I will look into the Trust Deed idea, sounds a more realistic approach if I can clear it over a 3 year period.

Thanks again for the pointers. :wink:


If you follow my posts-you will see that I dont recommend Trust Deeds lightly...... :D , but in your particular circs that you have posted I really feel this may be best option for you.

I recommend going to a face to face advisor like CAB or one from your local advice agency see http://www.moneyadvicescotland.co.uk.

Most of the agencies on there recommend a bank of Ip's which they have tried and tested and will go through your circs, to make sure you are happy with your decision. They will also sit through your initial interview and give you moral support.

I promise I am not slagging off Payplan (again....... 8)......lol) but the Payplan girl I spoke to recently ( and was a very good Advisor) who ventured North of Hadrians wall, only really dealt with one IP-who are probably excellent, but we tend to choose the IP that will do the best for our clients........ :D

If you cant find anyone,pm me and I will suggest a couple of Ip's to you